Managing your money. A useful budget pack for residents

Transcription

1 Managing your money A useful budget pack for residents

2 Managing your finances can be tricky with so many demands on your money. The way to stay on top of things is to prioritise your spending to ensure you don t get into debt. Paying your rent and/or mortgage for example, should be your top priority and it is down to you to tell us if you are having problems with paying. If you do get into debt, it is important to prioritise which are the most important to pay off.

3 This budget pack gives tips on how to control your money, including ideas on how to save money, working out priorities and how to budget. The most important tip is to make sure you talk to us if you are having problems paying your rent and/or mortgage. We can give you the advice you need and help to keep you in your home. If you do not pay your rent and/or mortgage, you could be evicted. Please contact your Area Housing Manager for help. Why it is important to budget It is important to budget properly - to know what money you have coming in and what you can afford to spend. Budgeting: Gives you a clear picture of where you stand financially. Can help make your money go further. Can be a good way of stopping rash spending. Can help prevent future debts. Will help you be less stressed.

4 Managing your money Who do I pay first? When bills mount up it can be hard to know who to pay first. It is important to prioritise debts so you can work out which would have the most serious consequences if you did not pay them. These debts then need to be paid first - even if that means giving up something else. Below are some common bills and outgoings and what can happen if they are not paid. DEBT Rent and/or mortgage Gas/electricity/telephone Council tax TV licence Magistrates court fines Maintenance Income tax, national insurance and VAT arrears Hire purchase agreement POSSIBLE OUTCOME OF NOT PAYING Eviction from your home Supply cut off Personal goods seized, deduction from wages or income support or job seekers allowance, prison sentence Fine/personal goods seized, prison sentence Personal goods seized, deduction from wages or income support or job seekers allowance, prison sentence Personal goods seized, deduction from wages or income support or job seekers allowance, prison sentence Personal goods seized, bankruptcy Repossession of the goods

5 While all of these are important, the last one on the list is worth looking at. Having an item repossessed if you cannot afford the repayments may seem awful, but there is little point in having a lovely new sofa or new TV if you have no home to put them in. Although hire purchase can be an effective way of buying items, it is worth considering the total cost of the item and asking yourself if you can really afford it. A good budget will help you decide yes or no. Advice on paying bills It is a good idea to pay a week or so in advance to help stay on top of your bills. Wherever possible, pay by direct debit as this means you won t forget to pay and sometimes you get a small discount for paying this way. Consider buying saving stamps from the post office as they can help you budget. They cost 5 each and can be bought at post offices to cover bills from gas, electricity, telephone and water companies among others. Tips for making your money go further Make sure you are with the cheapest supplier for your gas, electricity, water, telephone and internet services. Prepare a detailed shopping list based on a menu planner to help prevent those expensive impulse buys and to cut waste. Consider making your own packed lunches rather than buying ready-made sandwiches. Make sure you shop around when taking out any form of insurance to get the best deal. Look in the local papers or what s on magazines to find out cheap or free entertainment ideas.

6 Managing your money Five steps to follow 1. Get help immediately if debts start to grow. 2. Make sure you prioritise your debts and pay the most important ones first. 3. Check to make sure you are claiming all the benefits and tax credits to which you are entitled. 4. Don t borrow money to pay off your debts without getting proper advice first. See the back page for suggested contacts. 5. Put together a budget and stick to it if possible. As well as budgeting for regular costs, try and put some extra money aside for unexpected bills. Helpful contacts If you are worried about debt or are having difficulty in paying your rent, please contact your Area Housing Manager. If you would prefer to talk to someone else, you can contact an independent agency for specialist debt management and budgeting advice. National Debtline Consumer Credit Counselling Service Citizen s Advice Bureau See your local directory

7 Working out your budget To help work out your budget, follow the steps outlined on the next few pages. We have included the most common income and outgoings headings, but you may have others. Remember, either do your income and outgoings as weekly or monthly - do not mix the two. If some things are paid once a year, divide by 12 (for monthly) or 52 (for weekly).

8 Managing your money Step one: weekly or monthly income Wages/salary Wages/salary (partner) Job seeker s allowance Income support/pension credit Tax credit Retirement/works pension Housing benefit Child benefit Incapacity benefit Maintenance Non-dependants contributions Other Total income: Box A

9 Step two: weekly or monthly outgoings Rent and/or mortgage Council tax Water rates Service charge/ground rent Buildings/contents insurance Life insurance/pension Gas Electricity Other fuel Housekeeping (including food) TV rental/licence Magistrates court fines Maintenance payments Hire purchase vehicle Travelling costs School meals/meals at work Clothing Laundry Telephone/mobile Prescriptions/health costs Child and other care costs Internet connection Entertainment Other 1 Other 2 Total outgoings: Box B

10 Managing your money Step three: money for creditors Box A Box B Money for creditors: Box C minus Step four helps you work out your priority debts. To do this, fill in the total amount owed (under balance owed) and the agreed weekly or monthly payment. If you have not yet agreed a repayment plan with the person or organisation you owe money to, you should do this as soon as possible. It is better to contact them as they will be happier to talk to you than not hear from you - after all they will be better off with some money than none at all. Step four: priority debts Balance owed Weekly or monthly offer of repayment Rent arrears and/or mortgage arrears Council tax arrears Gas debts Electricity debts Other fuel debts Magistrates court fine arrears Maintenance arrears Hire purchase arrears Other 1 Other 2 Other 3 Total Priority debts repayment: Box D

11 Step five shows you how much money you have left for paying other creditors once you have paid your priority debts. Step five Money for creditors (Box C) Total priority debts repayment (Box D) Money for other credit debts: Box E minus Step six gives you space to note down any other debts you might have, such as store cards, credit cards and so on. Step six: other credit debts Creditor Balance owed Weekly or monthly offer of repayment Total balance owed: Box F Total weekly/monthly repayment: Box E If you need help completing this form please get in contact.

12 How to contact us Write Hastoe Direct, Hastoe Housing Association, Marina House, 17 Marina Place, Hampton Wick, Kingston Upon Thames, Surrey KT1 4BH Telephone Out of hours emergencies Alternative formats of this document If you require this information in another language, large print or different format such as braille or audio CD please contact Hastoe Direct. Textphone Website Accreditations We value fairness and diversity. We strive to do the best we can and to improve to achieve excellence. External organisations check that we mean and do what we say, and have accredited us. These include: in business for neighbourhoods means we have made a set of promises to customers, neighbourhoods and excellence in line with other National Housing Federation members. Investors in People is a standard which helps organisations transform their business performance through staff development. Gold means we have achieved the highest standard of the award. Positive about disabled people means means we have agreed to take action to meet five commitments regarding the employment, retention, training and career development of disabled employees. SHIFT provides an assessment of our sustainability performance. Stonewall works with a whole range of agencies- diversity champions - to address the needs of lesbians, gay men and bisexuals in the wider community. July 2013